Question : Which of the following is the assumption of the law of demand?
A: The commodity's price should not change.
B: The quantity requested should not change.
C: Substitute prices should not change.
Option 1: Only A correct
Option 2: B and C are correct
Option 3: Only C correct
Option 4: A, B, and C all are correct.
Answer (1)
24th Jan, 2024
Correct Answer: Only C correct
Solution :
According to the law of demand, if all other factors remain constant (cetris peribus), the price and quantity demand of any good or service are inversely related. When the price of a product rises, so does the demand for the same product.
Hence substitute prices should not change.
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